Asia rejects TV fee hike for Games

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The 2006 Commonwealth Games could face an Asian television
blackout unless organisers reduce their "brazen" asking prices for
exclusive broadcast rights in the region.

A television audience of more than 1 billion people could be
lost to the Melbourne Games and its sponsors, with major Asian
networks accusing organisers of arrogance and threatening to walk
away from negotiations unless prices become more realistic.

The Asia-Pacific Broadcasting Union confirmed that Games
organisers - operating through agent FastTrack - had tried to
charge an average 300 per cent increase on the figure paid for
Asian television rights to the 2002 Manchester Commonwealth
Games.

The mark-up has prompted all major Asian players, including the
crucial markets of India and Malaysia, to reject the offer in the
recent round of negotiations.

The issue will be a major discussion point when ABU members meet
for a conference in Bangkok in May.

ABU head of sport John Barton said the union had strongly
rejected the price rises.

"The Melbourne 2006 organisers are asking for an increase in
rights fees when almost every other sporting property is going
down," he said.

"The idea that these sums can be charged is not just wishful,
it's brazen."

Mr Barton would not reveal exact figures, but The Age
believes that the ABU paid close to $450,000 for the Manchester
rights.

Since talks with the ABU - which negotiates on behalf of Asian
broadcasters - broke down earlier this year, Games organisers have
tried to sell rights to individual broadcasters.

In documents obtained by The Age, Indian broadcaster
Doordarshan - which claims to be the world's largest terrestrial
television network - has rejected an attempt by 2006 organisers to
charge about 700 per cent more for rights than the network paid for
Manchester.

Doordarshan is believed to have counter-offered with a figure
250 per cent higher than what it paid for the 2002 rights, only to
be rejected.

Malaysian state broadcaster RTM has also been asked to pay well
beyond what the network considers reasonable.

RTM head of Sport TV Zainal Abidin Asri said there was no
guarantee the Games would be seen in Malaysia if the asking price
remained unchanged.

"As the Government station we normally have taken them . . . but
if the price is too high we have to reconsider," he said.

When asked the difference between the asking price and RTM's
highest offer, he said: "100 per cent."

Mr Barton said the Commonwealth Games ranked below events such
as the South-East Asian Games, and the Asian Indoor Games in terms
of viewer interest in most Asian countries.

"They should be thinking, 'forget the money, let's get this into
as many countries as possible, let's build a brand'," he said.

Games organisers must find $403 million from sponsorship, ticket
sales, television rights and Federal Government funding to remain
on budget.

The State Government has vowed to cap its contribution at $697
million.

Losing television exposure in the Asian market would not be a
devastating blow in itself to the Games budget, but could hurt
sponsorship and seriously damage hopes of using the event to
promote Victoria's tourism and business sector to foreign
markets.

A Melbourne 2006 spokesman said Australia was the only nation to
have completed a television rights deal for the 2006 Games, with
Channel Nine set to broadcast the event.

A spokesman for Commonwealth Games Minister Justin Madden said
the sale of rights internationally was for the Melbourne 2006
corporation to handle.

"We are confident that Melbourne 2006 will negotiate suitable
arrangements," he said.